GRAINS-Soybeans fall to two-week low as trade war threat escalates

Published 9:17 PM ET Sun, 11 March 2018
Reuters

SYDNEY, March 12 (Reuters) - U.S. soybean futures fell on Monday to hit a more-than-two-week low as traders worried about future demand for North American supplies as Chinese officials signalled the oilseed was a likely target for retaliation against tariffs imposed by U.S. President Donald Trump.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were down 0.1 percent to $10.38-3/4 a bushel by 0058 GMT, having earlier hit a low of $10.32 a bushel - the lowest since Feb 21. Soybeans fell 2.3 percent on Friday.

* The most active corn futures were down 0.6 percent to $3.88-1/4 a bushel, having closed down 0.8 percent in the previous session.

* The most active wheat futures were down 0.1 percent to $4.89 a bushel, having closed down 2 percent on Friday.

* Chinese officials have said U.S. soybeans are a prime target for retaliation against tariffs imposed by the Trump administration on steel and aluminium imports, according to the American Soybean Association.

* The U.S. Department of Agriculture in a monthly supply and demand report on Thursday cut projected U.S. corn stocks by more than expected on the back of healthy exports and ethanol demand.

* The USDA raised its outlook for global wheat inventory at the end of 2017/18 to a record. High world supplies were countering support from drought in parts of the Plains.

MARKET NEWS

* The dollar was little changed against a basket of currencies on Friday as monthly U.S. job growth data was its strongest in over 1-1/2 years while wage gains slowed more than expected, supporting the view the Federal Reserve would not quicken its pace on raising interest rates.

* Oil prices rose nearly $2 on Friday, rebounding from two days of declines as Wall Street climbed on strong U.S. jobs data, while investors also grew hopeful that a planned meeting between U.S. President Donald Trump and North Korea's Kim Jong Un could ease geopolitical tensions.